Chinese company Didi Global on Wednesday reported a 1.7% decline in third-quarter revenue when its domestic businesses were hit by regulatory measures.
Daniel Zhang, chief executive of Chinese e-commerce giant Alibaba, who had served as Didi’s board director since 2018, has resigned, the company said.
He will be replaced by Yi Zhang, Senior General Counsel for Alibaba Group.
The restrictions hit Didi, co-founded in 2012 by former Alibaba employee Will Wei Cheng and backed by SoftBank, which was the dominant company in China.
The company now faces stiff competition from free ride services from automakers Geely and SAIC.
Under pressure from Chinese regulators concerned about data security, Didi decided in December to exit the New York Stock Exchange (NYSE) and seek a listing in Hong Kong.
Didi shares, which soared in its IPO, giving the company an $80 billion valuation and marking the highest share of a Chinese company in the United States since 2014, have fallen 65 percent since then.
Revenue for the third quarter ended Sept. 30 fell to 42.7 billion yuan ($6.71 billion), from 43.4 billion yuan a year earlier.
Didi, which is expanding its presence in Europe and South America, said revenue from its international operations nearly doubled to 966 million yuan in the quarter.
The net loss attributable to common shareholders was 25.91 yuan.
Reference: CNN Brasil
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